A STUDY ON THE GST AND ITS IMPACT ON CONSUMER

BUYING BEHAVIOUR IN AUTOMOBILE INDUSTIRES IN

CHENNAI DISTRICT
Submitted in partial fulfilment of the requirement for the reward of
Master of Business Administration

By

BOOJA.S
39740075

Master of Business Administration

SCHOOL OF MANAGEMENT STUDIES
SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I Approved by AICTE
Jeppiaar
Nagar, RAJIV GANDHI SALAI, CHENNAI-600 119,

JANUARY-2022

1
 SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with “A” grade by NAAC I 12B Status by UGC I Approved by AICTE
Jeppiaar Nagar, Rajiv Gandhi Salai, Chennai-600 119

www.sathyabama.ac.in

SCHOOL OF BUSINESS ADMINISTRATION

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the Bonafide work of BOOJA.S
(39740075) who has done the project work entitled A STUDY ON IMPACT OF GST
ON THE ECONOMY OF INDIA under my supervision from December 2021 to
February 2022.

Dr. NASZIM SHA

Internal Guide External Guide
Dr. BHUVANESWARI G.
Dean, School of Business administration

Submitted for Viva voice Examination held on____________.

Internal examiner External Examiner

2
 DECLARATION

I BOOJA .S (39740075). Hereby declare that the project Report entitled “ A

STUDY

ON THE IMPACT OF GST ON THE ECONOMY OF INDIA” done by me under the

guidance of Dr. NAZIM SHA, MBA, MPhil, PhD. Assistant Professor, School of

Business Administration is submitted in partial fulfilment of the requirement for the

award of Master of Business Administration degree.

DATE:

PLACE CHENNAI N. DILLI BABU

3
 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Board of Management of

SATHYABAMA for their kind encouragement in doing this project and for completing it

successfully. I am grateful to them.

I convey my sincere thanks to Dr. BHUVANESWARI G., Dean, School of

Business Administration and Dr. PALANI A., Head, School of Business

Administration for providing me necessary support and details at the right

time during the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my Project Guide Dr.

NASZIM SHA ., Assistant Professor of the Department, School of Management for his

valuable guidance, suggestions and constant encouragement paved way for the successful

completion of my project work.

I wish to express my thanks to all Teaching and Non-teaching staff members of the School

of Business Administration who were helpful in many ways for the completion of the project.

I wish to express my thanks to my parents for their support and guidance throughout my

education.

BOOJA.S

4
 ABSTRACT
Adding pressures and challenges to ameliorate profitable and environmental performance
have caused developing countries in general and the automobile manufacturing companies
in particular to consider and start enforcing a green supply chain operation. It’s arising as an
important approach which not only reduces environment issues but also brings a profitable
benefit to manufacturers. Academicians and interpreters have made ferocious studies on
this issue, still, studies on performance evaluations are few. In responses this study explores
the criteria that impact the performance of the machine manufacturing an assiduity, using
Green supply chain criteria in improving the manufactures green performance. Finding show
that an utmost of the machine diligence successfully pursuing these generalities, It also has
some walls like an increase of cost for purchasing an environmentally friendly material is the
most influential and a significant criterion, while the pollution control initiatives are the most
effective criterion for this concluding reflections are made.

5
 TABLE OF CONTENTS

CHAPTER TITLE PAGE NO

NO.
ABSTRACT i
LIST OF TABLES ii
LIST OF CHARTS iii
LIST OF ABREVIATIONS
1 INTRODUCTION
1.1 Introduction
1.2 Statement of the study
1.3 Objectives of the study
1.4 Statement of the problem
1.5 Objectives of the study
1.6 Need for the study
1.7 Scope and Significance of study
2 REVIEW OF LITERATURE
2.1 Review of Literature
3 RESEARCH METHODOLOGY
3.1 Methodology
3.2 Need, Scope and Objectives
3.3 Sampling Technique
3.4 Google Forms
3.5 Percentage Analysis
3.6 Statistical Analysis
3.7 Research Tests
3.8 Research Design
3.9 Hypothesis Testing
4 DATA ANALYSIS AND INTERPRETATION
4.1 Percentage Analysis
4.2 Statistical Analysis
5 RESULTS AND DISCUSSIONS
5.1 Findings
5.2 Suggestions
5.3 Conclusion
REFERENCES

6
 APPENDIX (Questionnaires)

S.No LIST OF TABLES PAGE NO.

4.1 PERCENTAGE ANALYSIS
4.1.1 GENDER OF RESPONDENTS
4.1.2 AGE OF RESPONDENTS
4.1.3 EDUCATIONAL QUALIFICATION OF
RESPONDENTS
4.1.4 OCCUPATION OF RESPONDENTS
4.1.5 MONTHLY INCOME OF RESPONDENTS
4.2 STATISTICAL ANALYSIS
4.2.1 CORRELATION
4.2.2 CHI SQUARE
4.2.3 ANOVA

7
 CHAPTER-1
INTRODUCTION
India is currently moving towards major reforms in its taxation systems and economic
policies. The growth pattern of Indian is Very high and by 2030 it moving forward to
become the third-largest economy of the world.

Government is taking significant initiatives to boost the overall economic growth of

the country. Introduction to GST and its 3 types- CGST,SGST, IGST and UTGST are
providing effective support to such major economic development programs. Goods
and Services Tax is considered as the biggest taxation reform in the history of Indian
economy. It is a single uniform taxation system where all the taxes are subsumed
into one.

It will International Research Journal of Management Science & Technology

subsume taxes is introduced as The Constitution Amendment Act 2016 and it is
regulated by the Union Finance Ministry of India. It is a consumption based tax which
is levied on the supply of goods and services and will be imposed at each stage of
sale or purchase of goods or services based on the input tax credit method.

Based on a uniform taxation system, GST will not only turn Indian economy into one
common into one common market but also enhance the ease of doing business in
India. Due to GST industries will be able to make substantial savings in terms of
logistics and supply chain. Some companies will be benefitted more due to lower
GST rate as compared to the current taxation structure and few companies will have
to pay more tax as the GST rate as compared to the higher than existing tax
structure, which may increase the rate respectively.

National Securities Depository Limited (NSDL) will support the government and they
have created Goods and Services Tax Network (GSTN). It’s a non-government firm
which will provide IT infrastructure services to the central and state government,
stakeholders and tax payers for proper implementation and regulation of GST.

8
1.2 STATEMENT OF THE PROBLEM

The automobile industry in India is a giant business which produces a vast

number of cars and bikes annually, to cater to the needs of huge population of the
country. The Automobile sector in India is one of the largest in the world. The
industry contribution to country’s Gross Domestic Product (GDP) accounts for 7.1%.

India is one of the largest tractor manufacturer in the world, second largest two-
wheeler manufacturer, second largest bus manufacturer, fifth largest heavy truck
manufacturer, sixth largest car manufacturer and eight largest commercial vehicle
manufacturers. Under Automotive Mission Plan 2026,the goal is to make Indian
Automotive Industry among top three in manufacturing, engineering and exports of
vehicles & components in the world and expected to accounts for 12 per cent of
India GDP during the next decade. The Two Wheelers segment is the leader of the
Indian Automobile market with 80% market share due to a growing middle class and
a young population and the Passenger Vehicle (PV) segment holds 14 per cent
market share. India is also a prominent auto exporter and automobiles companies
are also exploring the rural markets which will also boost the growth of the sector.in
near future. Under the current tax system, there are several taxes applicable on this
sector like excise, VAT, Sales tax, road tax, and motor vehicle tax, registration duty
on car and bikes which will be subsumed by GST.

9
 1.3 INDUSTRY PROFILE
Automobile is one of the largest industry in India as well as in the global market.

Automobile industry has surfaced as daylight sector in the Indian economy. This

industry occupies a prominent place in the fabric of Indian Economy. Automobile is

considered as leader in product, process and technologies in manufacturing

industries. Machine assiduity drives the profitable growth and its performance is
viewed as a reflection of the economy’s health. India was the world's fifth largest
manufacturer of cars and seventh largest manufacturer of marketable vehicles.
Indian automotive industry including element manufacturing is anticipated to
reach16.16-18.18 trillion by 2026. The Government aims to develop India as a global
manufacturing and exploration and development (R&D) hub. It has set up National
Automotive Testing and R&D Structure Design (NATRIP) centers as well as National
Automotive Board to act as facilitator between the Government and the assiduity. In
May 2021, India’s product of motorcars reached units, The Indian automobile
industry has bettered its product capability and quality over the times. The machine
assiduity comprises a wide range of companies and associations involved in the
design, development, manufacturing, marketing, and selling of motor vehicles, And
it's one of the world's largest diligence by profit. It's plant that automobile industry is
using numerous technological software tools similar as ERP, SCM, SRM, CRM,
TMS, and also using physical tools similar as barcodes, RFIDs, GPS, interfaces
similar as EDI, Internet, procedural tools similar as outsourcing noncore conditioning
to others like logistics (3PL/ 4PL LSPs), installation operation (FM), VMI, bring
reduction initiatives by being procedural changes and periodic reviews like checkups,
VSMs. Still it's seen that cost reduction pressure is there to boost unborn demand
and hence new technologies similar as IOT, Big Data, Data Science, Artificial
Intelligence (AI) & machine literacy, robotics are coming up at a fast face to revise
the supply chain as a whole.

10
 CHAPTER – 2
LITERATURE REVIEW
2.1 REVIEW OF LITERATURE
1. Kumar R (2016) has identified the impact of GST on Indian Economy with an
evaluation of GST and preceding taxation system, and recover easily input taxes in
the form of tax credits.

2. Lourdunathan F and Xavier P (2016) has exposed that the challenges prospects
of implementing GST, finishing that GST will fetch one nation one tax that will
discharge producers and consumers from several taxes.

3. Neelavathi K., Sharma R (2017) identified impact of GST on automobile industry,

the study concluded that automobile industry can developed one of the important
contributors for the economic growth of the country as well as it helps in growing the
employment opportunity. They were fruitfully able to analyse different tax rate levied
on vehicles during pre and post period of GST. Ms. Charmi Karia; A Study on impact
of GST on Automobile Sector in India.

4. Jain T., Agrawal, Goyal A (2017) asserted that impact of GST on real estate and
automobile sector, the study recommends that the real estate and automobile sector
can increase from GST if they are appropriately furished for the transformations in
the business environment.

5. Chaudhri K., Kour M., Singh S. (2016) stressed that study on impact of GST
after its implementation, the study rewarded that GST helps to dispose of multiple
taxation, it will reduce the burden at presents, imported and Indian goods would be
taxed at the same rate. Many indirect taxes like sales tax, VAT are abolished
because there will be one tax system.

6. Kharde S.D. (2017) has noted that impact of GST on Indian automobile industry,
the paper enclosed the overall impact of GST policy on automobile sectors in India
and made comparative study between pre-tax policy and GST on Automobile
industry. Author also concluded on GST impact on the economic development of the
country.

11
7. Agog Mawali (May 2014) considered, “ Goods and Services Tax- An Appraisal ”
and found that GST isn’t good for low-salary nations and does not give wide based
development to poor nations. On the off chance that still these nations need to
actualize GST, at that point the rate of GST ought to be under 10% for development

8. Garg (2014) contemplated “ Fundamental Concepts and Features of Good and

Services Tax in India” and found that a tax is certainly not voluntary payment or
donation, however an implemented commitment, claimed as per authoritative expert”
and is any commitment forced by government whether under the name of toll,
tribute, impost, duty, custom, excise, subsidy, aid, supply, or other name. All sectors
of economy whether the industry, business including Govt. divisions and services
sector will need to endure effect of GST. All areas of economy viz., enormous,
medium, little scale units, mediators, shippers, exporters, brokers, experts and
consumers will be directly influenced by GST.

9. Gowtham Ramkumar (2017) in his examination titled “Effect of GST on

Consumer spending capacity in Chennai City” reasoned that consumers are left with
less cash after GST implementation. He further presumed that GST rates will
significantly affect the spending capacity of the consumers and proposed that
advantages of info tax credit must be exchanged by the organizations to the
consumers.

10. Mandeep Kaur and Sandhu (2006) attempted to find out the important features
which a customer considers while going for the purchase of a new Automobile. The
study covers the owners of passenger Automobiles living in the major cities of the
State of Punjab and the Union Territory of Chandigarh. The respondents perceive
that safety and comfort are the most important features of the passenger Automobile
followed by luxuriousness. So the manufacturers must design the product giving
maximum weightage to these factors.

11. Chidambaram and Alfread (2007) postulates that there are certain factors
which influence the brand preferences of the customers. Within this framework, the
study reveals that customers give more importance to fuel efficiency than other
factors. They believe that the brand name tells them something about product
quality, utility, technology and they prefer to purchase the passenger Automobiles

12
which offer high fuel efficiency, good quality, technology, durability and reasonable
price.

12. Satya Sundaram (2008) analyzed how the competition makes the automobile
manufacturer to launch at least one new model or a variant of the model every year.
This survey also pointed out that diesel Automobiles are becoming popular in India
and the announcement of reductions in excise duties by the government has helped
to some extent to boost the demand.

13. Clement Sudhakar and Venkatapathy (2009) studied the influence of peer
group in the purchase of Automobile with reference to Coimbatore District. It was
also found that the influence of friends is higher for the purchase of small sized and
mid sized Automobiles.

14. Brown et al (2010) analysed the consumers‟ attitude towards European,

Japanese and the US Automobiles. The country – of – origin plays a significant role
in the consumers‟ behaviour. The brand name, lower price and distributor reputation
completely have a significant impact on the sale of passengers‟ Automobile.
However, the present study differs from the above, in that, the buyer behaviour in
Chennai in Tamil Nadu is sought to be analyzed here. The scope and the area of the
study are unique in nature.

15. James U. Mcneal, Chyon-Yeh, (2016) have searched that examining

―Tolerance for Unethical Consumer Behaviour Provides a Key Insight to how
People Behave as Consumers Worldwide‖. In this study, consumer reactions to
unethical consumer behaviour scenarios are investigated using sample data from
Austria, Brunei, France, Hong Kong, the UK, and the USA. Nationality is found to be
a significant predictor of how consumers view various questionable behaviours.
Gender is not a significant predictor, while age and religious affiliation are found to
be significant predictors of consumer ethical perceptions.

16. Krishna Mohan Y. and Naidu, (2015) have identified ―An Evaluation of
Consumer Awareness in Rural Markets‖. This paper deals with the extent of
awareness in rural markets of India. It presents the ― Gold‖ available in this steadily
growing market which has been going great guns since the 1980‘s and now bigger
than the urban market for both FMCG‘s and durables, the former with 53 per cent
share and the latter with 59 per cent of total market.

13
17. Paul Harrison and Robin Shaw, (2014) have contributed ―Consumer
Satisfaction and Post-Purchase Intentions‖. An Exploratory Study of Museum
Visitors. This paper examines the relationship between consumer satisfaction and
subsequent intentions in the museum context as well as the moderating influence of
demographic characteristics such as gender, age and education in that relationship.
The relationship between satisfaction and a range of service elements, overall
satisfaction with the experience and intentions was investigated. Museum marketers
can profit by examining the 'Value chain" of museum experience outlined in the
model presented, especially the greater likelihood of consumers recommending the
experience to others than making a repeat visit themselves, and by investigating
segment differences beyond those reported here.

18. Sudarshan R. and Sridhar, (2013) have conducted ―Impact of Consumer

Involvement of Buying Decision - A Conceptual Frame-Work. Consumer involvement
refers to the intensity of interest with which consumers approach the market place. It
is related to the consumers‘ values and self-concept which influence the degree of
personal importance ascribed to a product or situation consumer involvement varies
Krishna across different individuals, product, brands and situations.

19. Alet C. Erasmus, Meriam M. (2012) has focused on the ―The Paradox of
Progress: Inexperienced Consumers‘ Choice of Major Household Appliances‖. The
results supported the initial notion that limited consumer socialization may result in,
and even necessitate inexperienced consumers‘ reliance on surrogate indicators of
quality, such as price, brand name and store image, as compensation for lack of
appropriate product knowledge unfortunately the use of surrogate indicators of
quality does not necessarily imply informed, responsible buyer behaviour.

20. Christopher P. Blocker, Daniel J. Flint, (2007) has analyzed that ―The
Relationship between Satisfaction, Loyalty and Buying Intention Perceived by
Spanish Consumers. Scale development was based on the review of the most

14
relevant literature regarding food marketing and agribusiness. Data were collected
through a structured questionnaire. A structural equations model was applied to
analyze the relationships among consumer satisfaction, loyalty and buying intention.
The results show that a higher satisfaction leads to greater levels of loyalty and
buying intention of the consumers.

20. Piplai (2001) examines the effects of liberalisation on the Indian vehicle industry,
in terms of production, marketing, export, technology tie-up, product upgradation and
profitability. Till the 1940s, the Indian auto industry was non-existent, since
automobile were imported from General Motors and Ford. In early 1940s, Hindustan
Motors and Premier Auto started, by importing know-how from General Motors and
Fiat respectively. Since the 1950s, a few other companies entered the market for
two-wheelers and commercial vehicles. However, most of them either imported or
indigenously produced auto-components, till the mid-1950s, when India had
launched import substitution programme, thereby resulting in a distinctly separate
auto-component sector.

21. Japee and Lakhani (2018) studied about Goods and Services Tax in India –
Paradigm Shift in Taxation. This study focuses on impact of GST from international
perspective. Researcher presented pre and post GST tax classification and also
explained the importance and need of GST in India. This study also explains the
journey of GST that how it came into effect in 2017 and also analysis of impact of
GST on famous sectors of economy has been done. At last researchers concludes
that this tax system will benefit the customers as well as the business houses only
when the entire country works as a whole towards making it successful.

22. Saeeda (2019) studied about GST: Impact of GST on Various Aspects of
Restaurant and Hotel Business in Anand and Nadiad District. The main aim of the
study is to examine the impact of GST on various aspect of restaurant business in
Anand and Nadiad City. For the study purpose, researcher selected 35 hotels and
restaurants from Anand city and 33 hotels and restaurants from Nadiad city using
Convenience Sampling technique. The study is based on primary data collected
using structure questionnaire. Researcher used Pearson Correlation, T-test and
Independent sample test for the hypothesis testing. Researcher concluded that effect
of GST on sales and purchase of hotel and restaurants is positive to neutral but the

15
profit remains constant even after the implementation of GST. Researcher also
stated that accounting procedure and record keeping become easier and production
and service cost remains same.

23. Subha and Premkumar (2020) examined An Empirical Study on Impact of GST
on Hotel Industry at Chennai City. This study aims to find out the influence of GST
on Hotel Industry at Chennai city with the help of five independent variables to
indentify the opinion of respondents on the implementation of GST namely GST is
effective, easy to understand, taxation condition, profit margin, customer increase
after GST. For study purpose researchers collected data from 50 hotels by using
structured interview method. The sampling technique adopted by researchers was
disproportionate stratified random sampling method. Researchers used descriptive
statistics and multiple regression analysis to analyze data. Researchers examined
the pros and cons of GST with respect to Hotel Industry and also analyzed the
positive or negative influence of GST on Hotel Industry at Chennai city. So finally
study concluded that GST in hotel industry will attract more customers to consume
hotel service and also enhance revenues to the government.

24. Jonathan and Gabriel (2017) examined the Impact of GST in hotel and
restaurants. This study focuses on impact analysis on the restaurant and food
industry. Researchers classified the restaurants on the basis of the food and
services they provide respectively. And accordingly researchers examined the before
and after GST scenario. Researchers explained how the restaurant bill will look
under GST and what will be the implications for the end customers, the owners and
the overall industry. So finally researchers concluded that companies specializing in
food and beverages operations could be the biggest beneficiaries of GST within the
hospitality sector. They further added that food and beverages bills have multiple
components and can inflate the bills by 30-35% and a single slab tax will benefit
consumers and should lead to savings of 10-15% on the overall bill.

25. Abraham and Mathew (2019) examined A Study on the Impact of Goods and
Services Tax Reform on Hotels in Kerala. The main aim of the study is to examine
the opinion of hoteliers on the implementation of GST. A questionnaire was designed
and administered to 60 hotels with restaurants across the district of Kottayam for the
study using convenience sampling technique. Researchers used percentages and

16
chi square test to analyze the data. Moreover, researchers also focused to identify
the problems faced by hoteliers on the implementation of GST. This study also
assesses whether there is any increase in the compliance cost on the
implementation of GST. So finally researchers concluded that majority of the
hoteliers have expressed faith in the system even though the majority of hotels have
incurred additional costs in transitioning towards the new system as it is expected by
them that in the long run GST will be proved beneficial.

26. Aswathy et al (2018) focused on A Study on GST and its effect on hotel
industry. This study aims to find out the impact of GST on hotel industry.
Researchers classified the GST rates on the basis of room rent and then accordingly
examined the impact of GST as per the rates. This study shows the impact of GST
on hotel sector in terms of reduced tax rate, centralised registration, provision of
GST audit, discount and offers policies of hotels and restaurants should be
documented, effect of inward and outward receipts, no input tax credit on alcohol
and electricity as they are out of the preview of GST and so on. So finally
researchers concluded that companied that focuses on food and beverages could be
the biggest beneficiaries of GST within the hospitality sector and on the other hand
hotels falling under 18-28% GST slab bears the adverse effect of GST. With that
researchers also suggested to reduce the average room rates which will be
beneficial to both hoteliers as well as to the customers.

17
 CHAPER – 3

METHODOLOGY

3.1 RESEARCH METHODOLOGY

Research methodology is needed for the purpose of framing the research process
and designs tools that are to be used for the project purpose. More specifically, it’s
about systematically designs a study to ensure valid and reliable results that address
the research aims and objectives. Our research methodology helps to find, how the
automobile industry concerned in environmental issues. This time research
methodology is framed for the purpose of analyzing and assessing the green supply
chain management practices in automobile industry.

3.2 NEED,SCOPE AND OBJECTIVES

NEED FOR THE STUDY

This study was based on, (GST) Goods and Services Tax may have a positive
impact on automobile industry in a long run, since government has already received
the tax rate in the current financial budget. There are chances of same to happen in
future which will bring a growth in Automobile sector.

SCOPE OF THE STUDY

Automobile has become a necessity and forms a part of life. Therefore, there is a
significant scope to examine the perception and purchase behaviour of the
consumers of automobiles. The study us restricted to Chennai of tamilnadu, which is
economically the richest district famous both for lorry body building and poultry
farming. Due to their increasing purchasing power, the people of this district have
started to buy automobiles for business or personal use or the prestige and
maintenance of social status. Chennai with a population of 14, 95,661 is a potential
market for all consumer products and services. Knowledge of the buying behaviour
of the different market segments helps a seller to select their target segment and
evolve marketing strategies to increase the sales. Advertisers and marketers have
been trying to discover why consumers buy and what they buy. This study tries to
analyse the influence of perception in the consumers” mind and how this information

18
can be used successfully by marketers to gain entry into the minds of the
consumers. The scope of this research has a very good future.

OBJECTIVES OF THE STUDY

The purpose of this research is to study the behavior of consumers, their importance
in the aspects of life style and level of satisfaction. Hence, the study is aimed at the
following objectives.

1. To evaluate Automobile owners” perception and behaviour pertaining to the

purchase and use of automobiles.
2. To identify and analyse the factors influencing the purchase and use of
automobiles.
3. To identify and analyse the factors influencing the purchase of Automobiles.

3.3 POPULATION, SAMPLING AND QUESTIONNAIRE SURVEY

Sampling is a vital strategy in a statistical analysis, which comprises a selection of a few

portions of a potential population so as to assess or learn something from the population
at a cheaper cost. Simple random sampling (SRS), popularly known as “random
sampling”, includes the selection of sample at arbitrary from the sampling frame utilizing
either random number tables or an internet arbitrary number generator. The
questionnaire comprises close-ended and open-ended questions with multiple- choice
options. The survey questionnaire is designed online, hosted in google drive and shared
in a Google form. Link to the Google form is shared on professional platforms such as
LinkedIn and construction professionals’ forums, as well as direct emails sent to the key
players in the built environment. A total of 100 responses were received

3.4 GOOGLE FORMS

Forms are among the internet's most versatile tools. Whether you need a contact
form or a checkout page, a survey or a student directory, a form is all you need to
easily gather that information. With Google Forms, it only takes a few minutes to
make one for free. Google forms along with Docs, Sheets, and Slides is part of
Google's online apps suite of tools to help you get more done in your browser for
free. It's easy to use and one of the simplest ways to save data directly to a
spreadsheet, and it's the best sidekick to Google Sheets' spreadsheets.

19
3.5 PERCENTAGE ANALYSIS
Percentage analysis is the method to represent raw streams of data as a percentage
(a part in 100 - percent) for better understanding of collected data. A percent change
analysis shows how two items changed as a percentage from one period to another
period. Used on a balance sheet, a percent change analysis shows how a balance
sheet account changes from year to year, or quarter to quarter. The balance sheet
accounts are assets, liabilities and stockholders' equity. Percentage Statement
Analysis is an analysis which highlights important relationships in the percentage
statements. Percentage Statement analysis embraces the methods used in
assessing and interpreting the results of past performance and current percentage
position as they relate to particular factors of interest in investment decisions. It is an
important means of assessing past performance and in forecasting and planning
future performance.
Percentages are often used to express a proportionate part of a total. If 50% of the
total number of students, long before the existence of the decimal system,
computations were often made in fractions. The term "percent" is derived from the
Latin per centum, meaning "hundred" or "by the hundred". The Percentage increase
and decrease, Due to inconsistent usage, it is not always clear from the context what
a percentage.
Majorly the percentage error formula is used to determine how accurate the
calculated value is by keeping in mind the actual value. I mentioned in a very rough
language, it is the variation of the gap between the calculated value and the genuine
value expressed in the form of a percentage. Commonly, the extent of the
percentage error is expressed in the positive denominations, although having a
negative percent error is not a wrong approach. Relying on the sign of the
percentage error measure, it could be analyzed whether the calculated value is
being paced below or higher to the actual value. The tool of percentage error formula
is one of the most reliable and accurate tools in calculating the relative error by
keeping the original measure as the basis.

20
 3.6 STATISTICAL ANALYSIS
Statistical analysis is the science of collecting, exploring and presenting large amounts
of data to discover underlying patterns and trends. Statistics are applied every day in
research, industry and government to become more scientific about decisions that need
to be made.
Importance
Statistical analysis is a study, a science of collecting, organizing, exploring,
interpreting, and presenting data and uncovering patterns and trends. Many
businesses rely on statistical analysis and it is becoming more and more important.
One of the main reasons is that statistical data is used to predict future trends and to
minimize risks.
DESCRIPTIVE ANALYSIS
The descriptive statistic is used to describes the basic features of information and
shows or summarizes data in a rational way. Descriptive statistics is a study of
quantitatively describing. This type of statistics draws in all of the data from a certain
population or a sample of it. Descriptive statistics can include numbers, charts,
tables, graphs, or other data visualization types to present raw data. However,
descriptive statistics do not allow making conclusions. we cannot get conclusions
and make generalizations that extend beyond the data at hand. With descriptive
statistics, you can simply describe what is and what the data present.
Inferential type
This type of statistical analysis is used to study the relationships between variables
within a sample, and we can make conclusions, generalizations or predictions about
a bigger population. In other words, the sample accurately represents the population.
Moreover, inference statistics allows businesses and other organizations to test a
hypothesis and come up with conclusions about the data. One of the key reasons for
the existing of inferential statistics is because it is usually too hard to study an entire
population of people or objects.

3.7 RESEARCH TESTS

ANOVA
ANOVA in SPSS is used as the test of means for two or more populations. ANOVA
in SPSS must have a dependent variable which should be metric (measured using

21
an interval or ratio scale). ANOVA in SPSS must also have one or more independent
variables, which should be categorical in nature.
CHI-SQUARE
The Chi-Square Test of Independence determines whether there is an association
between categorical variables, whether the variables are independent or related. It is
a nonparametric test. This test is also known as Chi-Square Test of Association.
CORRELATION
Correlation analysis in research is a statistical method used to measure the strength
of the linear relationship between two variables and compute their association.
Simply put correlation analysis calculates the level of change in one variable due to
the change in the other.
3.8 RESEARCH DESIGN

This Research is descriptive in nature as it designates the impact of GST on

Automobile sector in Chennai.

3.9 HYPOTHESES OF THE STUDY

The following hypothesis were framed and tested

 H 0 :There is no relationship between GST and sales

H 1 :There is relationship between GST and sales

 H 0 :There is no relationship between GST and Buying Decisions

H 1 :There is a relationship between GST and Buying Decisions

 H 0 :There is no relationship between GST and purchase behaviour

H 1 :There is a relationship between GST and purchase behaviour

22
 CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION
4.1 PERCENTAGE ANALYSIS
TABLE 4.1.1 GEENDER
S.no Particulars No of Percentage
respondents
1. Male 62 62%
2. Female 38 38%
Total 100 100%
TABLE 4.1.1 representing Gender of the respondents

• Out of 100 respondents male respondents are 62.00 percentage and female
respondents are 38.00 percentage

TABLE 4.1.2 AGE GROUP

S.no Particulars No of responses Percentage

1. 27-35 37 37.0
2. 36-44 24 24.0
3. 45-55 33 33.0
4. 55 and above 6 5.0
Total 100 100%
TABLE 4.1.2 representing Age group of the respondents

• Out of 100 respondents, 37.00 percentage of the respondents are aged between
27-35, 24.00 percentage of the respondents are aged between 36-44, 33.00
percentage of respondents are aged between 45-55 and 6.00 percentage of the
respondents are at the age crew of above 55

TABLE 4.1.3 EDUCATIONAL QUALIFICATION

S.no Particulars No of Percentage

respondents
1. Doctorate 7 7%
2. Post-Graduate 23 23%
3. Graduate 70 70%
Total 100 100%
TABLE 4.1.3 representing Educational qualification of the respondents

23
• Out of 100 respondents, 70.00 percentage of respondents belong to Doctorate,
23.00 of the respondents belong to Post-graduation and the remaining 7.00
percentage of the respondents are Graduate

TABLE 4.1.4 OCCUPATION

S.no Particular No of Percentage
respondents
1. Self employed 7 7%
2. Government 23 23%
3. Private 70 70%
Total 100 100%
TABLE 4.1.4 Representing Occupation of the respondents

• Out of 100 respondents, 70.00 percentage of the respondents were private

employees and 23.00 percentage of the respondents were government employees
and 7.00 percentage of the respondents were self-employed

4.1.5 INCOME
S.no Particulars No of Percentage
respondents
1. 20000-30000 10 10.0

2. 30000-40000 27 27.0

3. 40000-50000 62 62.0

4. <50000 1 1.0
Total 100 100.0
TABLE 4.1.5 representing of the respondents

• Out of 100 respondents, 10.00 percentage of the respondents comes under the
category of income 20000 - 30000, 27.00 percentage of the respondents comes under
the category of income between 30000 – 40000, 62.00 percentage of the respondents
comes under the category of income 40000 – 50000 and 1.00 percentage of the
respondent comes under the category of income above 50000.

24
 4.2 STATISTICAL ANALYSIS

4.2.1 CORRELATION

GST ANS SALES

H 0 :There is no relationship between GST and sales

H 1 :There is relationship between GST and sales
Spearman's rank-order correlation
Correlation
GST Sales
Spearman's rho GST Correlation 1.000 .402**
Coefficient
Sig. (2-tailed) . .002
N 100 100
Sales Correlation .402** 1.000
Coefficient
Sig. (2-tailed) .002 .
N 500 500
**. Correlation is significant at the 0.02 level (2-tailed).

• From the table, It is interpreted that the significance value is 0.02 which is less than
0.05 and less than the critical value 2, So the null hypothesis rejected and alternative
hypothesis got accepted. Thus, there is a relationship between GST and Sales

25
GST AND BUYING DECISIONS
H 0 :There is no relationship between GST and Buying Decisions
H 1 :There is a relationship between GST and Buying Decisions

Spearman's rank-order correlation

Correlation
GST BUYING DECISIONS
Spearman’s GST Correlation Coefficient 1.000 .502**
rho Sig. (2-tailed) . .001
N 100 100
BUYING Correlation Coefficient .502** 1.000
DECISIONS
Sig. (2-tailed) .001 .
N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).

Table 4.7: Respondents Monthly Income

• From the table, It is interpreted that the significance value is 0.01 which is less than
0.05 and less than the critical value 1, So the null hypothesis rejected and alternative
hypothesis got accepted. Thus, there is a relationship between GST and B uying
decisions

26
GST AND PURCHASE BEHAVIOUR
H 0 :There is no relationship between GST and purchase behaviour
H 1 :There is a relationship between GST and purchase behaviour
Correlation
PURCHASE
GST BEHAVIOUR
Spearman's rho GST Correlation Coefficient 1.000 .802**
Sig. (2-tailed) . .000
N 100 100
BEHAVIOUR Correlation Coefficient .802** 1.000
Sig. (2-tailed) .000 .
N 100 100
**. Correlation is significant at the 0.00 Level (2-tailed).

Table 4.8: Respondents Monthly Income

From the table, It is interpreted that the significance value is 0.01 which is less than 0.05
and less than the critical value 1, So the null hypothesis rejected and alternative
hypothesis got accepted. Thus, there is a relationship between performance and
packaging

27
4.2.2 CHI SQUARE
GST AND SALES
H 0 :There is no relationship between GST and sales
H 1 :There is relationship between GST and sales
Chi-square and df Fishers Exact Test
GST Pearson Sig 2 sided
Total
Sales Strongly agree 5.0 & 5.5 .001 6
Agree 5.0 & 5.5 .001 94
Total 100

• From the table, It is interpreted that the significance value is 0.001, which was less
than 0.5, So the null hypothesis rejected and alternative hypothesis got accepted
with the chi square value 5.0 and 5.5. Thus, there is an association between Gst and
Sales

28
GST AND BUYING DECISIONS
H 0 :There is no relationship between GST and Buying Decisions
H 1 :There is a relationship between GST and Buying Decision
Chi-square and df Fishers Exact Test
GST Pearson Sig 2 sided
Total
Buying Strongly agree 7.5 & 6.5 .001 12
decisions
Agree 7.5 & 6.5 .001 88
Total 100

• From the table, It is interpreted that the significance value is 0.001, Which was less
than 0.5. So the null hypothesis rejected and alternative hypothesis got accepted with
the chi square value 5.0 and 5.5. Thus, there is an association between GST and Buying
decisions

29
GST AND PURCHAE BEHAVIOUR
H 0 :There is no relationship between GST and purchase behaviour
H 1 :There is a relationship between GST and purchase behaviour
Chi-square and df Fishers Exact Test
Technology Pearson Sig 2 sided
Total
Strongly agree 6.0 & 4.8 .001 11
Agree 6.0 & 4.8 .001 89
Total 100

• From the table, It is interpreted that the significance value is 0.001, Which was less
than 0.5. So the null hypothesis rejected and alternative hypothesis got accepted with
the chi square value 6.0 and 4.8. Thus, there is an association between GST and
Purchase behaviour

30
4.2.3 ANOVA

Table 4.9: ANOVA

GST Mean
Sum of Squares df Square F Sig.
Sales Between Groups 1.783 6 .594 5.312 .001
Within Groups 55.505 94 .112
Total 57.288 100
Buying Between Groups 1.739 11 .580 5.108 .002
Decisions Within Groups 56.283 89 .113
Total 58.022 100
Purchase Between Groups 1.783 12 .594 5.312 .001
Behaviour Within Groups 55.505 88 .112
Total 57.288 100

• Results states that, There is a relationship between dependent variable and

independent variable because of the strong F value, which was greater than the
significance value

• sales 5.312>0.001,buying decisions 5.108>0.002,purchase behaviour 5.312>0.001

• So the null hypothesis rejected and alternative hypothesis got accepted

31
 CHAPTER – 5
RESULTS AND DISCUSSION

5.1 FINDINGS

Out of 100 respondents, Majority(62%) of the respondents are male, Majority(37%)

of the respondents falls in category of 27-35 years of age. Majority(70%) of the
respondents are graduated. Majority(70%) of the respondents working in private
sectors. Majority(63%) of the respondents having income 4,00,000 to 5,00,000.

Out of 100 respondents, Majority(80%) of the respondents agreed that

Manufacturing units in an industry get commitment and support for environment
friendly practices from top management. Majority(60%) of the respondents GST
services. Majority(55%) of the respondents agreed that GST buying behaviour the
value chain of an organization it values environmental, social, and economic
outcomes effectively. Majority(45%) of the respondents of GST enhance the growth
of e-con industry. The only set-back of GST on this industry is the Tax Collected at
Source(TCS) mechanism which many companies are not too excited about influence
of GST on pharmaceutical and Healthcare Sector. GST will be of enormous benefit
to healthcare and pharmaceutical industry.

Alternative hypothesis was accepted saying that GST has positive relationship of
buying decisions and purchase behaviour.
GST is aimed at reducing corruption and sales without receipts. GST reduce the
need for small companies to comply with excise, service tax and VAT. GST brings
accountability and regulation to unorganised sectors such as the textile industry.
GST has replaced multiple taxes like sales tax, services tax, etc.., which made India
more of an integrated national market and brought more people into the taxation net
is the need for gst. By improving efficiency, it can add substantially to finances as
well as the growth of the country.

32
5.2 SUGGESTIONS

 Automobile industries had good knowledge on green supply chain

management and strives to adopt the compatible ways of
implementing/practicing the green supply chain in their manufacturing firm
 Funding from the government for implementing the concept and spreading the
knowledge on the concept is necessary
 The management should train their employees to work with less wastage and
for the safety of environment
 A large component of a passenger Automobiles cost is taxes such as excise
duties, central and state sales taxes which push up the ex-factory price of a
automobile by around 50%.
 The government, both the central and the state should come forward to
reduce these tax levels to enhance the demand for automobiles in the
country. The study reveals that the middle class population has risen to 13
percent of the total population.
 Hence the brand loyalty could be boosted by selling quality Automobiles at a
reasonable price to suit the needs of the middle income group.
 Automobile owners feel that the hospitality shown by the dealers is more
during their visits to the places of dealers before and immediately after the
purchase. But after some time they face a problem with their dealers
regarding after sales service.
 Therefore, it is suggested that the services rendered or to be rendered should
be properly explained, friendly approach and reliability in service are to be
further improved.

33
5.3 CONCLUSION

Goods and services tax are considered as the essential tax reform for the nation. It
looks to make the nation one common economic market. Be that as it may, the idea
of goods and services tax followed in our nation is unique in relation to the way it is
pursued abroad. GST idea has been creating by the more noteworthy investment of
individuals and the business worry in Indian economy. The present investigation
offers that the GST system with customers confronting more issues in some different
conditions. It would build up the nation with more inter-grated tax and revenues to
the government. However, taxes initiatives taken by the Government will lead to
future Practice of Goods and Service Tax (GST).

34
REFERENCES

 Kothari C.R Research Methodology, New Age International (P) Limited, 2nd
Revised Addition, 2004.
 Shefali Dani- Business and Economics Journal, An article was published
regarding” A Research Paper on an Impact of Goods and Service Tax (GST)
on Indian Economy”
 Amandeep kaur, International Journal of Advance Research in Science and
Engineering, the research paper was published on “A Research Paper on
Impact of GST on Indian Economy”
 M.Sankaran & Dr.A. Sreelatha, International Journal of Pure and Applied
Mathematics, The research paper is published that “Effect of GST on Indian
Economy
 Yogesh K A., IOSR Journal of Business and Management, a research article
was published on “Goods and Services Tax and Its Impact on Indian
Economy”
 Nidhi Garg, Research Review International Journal of Multidisciplinary, and
the research paper was published on “Impact of GST on Various Sectors of
Indian Economy”
 Megha Agrawal - An Article was published regarding “Study of the Leading
Sectors of Indian Economy after GST Implementation
 Natika Poddar & Reema Mishra, In International Journal of Management
Studies,The article was published regarding “GST-An Implications to An
Indian Economy”
 Namita Mishra, Research Gate Publication. November 2018, an article was
publishedregarding “Impact of GST on Indian Economy”.
 Garg, G. (2014). Basic Concepts and Features of Good and Service Tax in
India. International Journal of scientific research and management (IJSRM)
 Mawuli, A., (2014). “Goods and Service Tax- an Appraisal” Paper presented
at the PNG Taxation Research and Review Symposium, Holiday Inn, Port
Moresby
 G. Ramkumar (2017). “Impact of GST on consumer spending ability in
Chennai city”, Primax International Journal of Commerce and Management
Research (PIJCMR)

35
 Barhate, G. H. (2017). An Analytical Study of Awareness and Perception
Towards GST amongst Traders in Rural Areas, International Research
Journal of Engineering and Technology
 Mohamad Ali Roshidi Ahmad (2016). Awareness and Perception of
Taxpayer’s towards Goods and Service Tax Implementation. International
Journal of Academic Research in Business and Social Science
 Nasir, N. B. (2015). Public Awareness towards Goods and Service Tax in
Malaysia, International Academic Research Journal of Social Science
 One Nation, One Tax (2016). Finally, Road to GST Clear. Tax man's
Corporate Professional Today
 Poonam, M. (2017). International Conference on Recent Trends in
Engineering, Science and Management. Anandpur Sahib, Punjab, India.
 Sauda, S. (2016). Sectoral Impact of GST. Taxman's Corporate Professionals
Shasta Gupta and Neelam Jhawar (2017). People’s Perception towards
Goods & Services Tax: Good or Bad. Asian Journal of Research in Business
Economics and Management
 Atari Kothari, „Maruti does a different jig and ends up changing itself and the
auto market in turn‟, Business World,
 Aayush Chowdhury, Abhishek Kapoor, „Profiling the Young Indian
Consumer‟, Advertising Express, Alok Saklani,H.C., Purohit and Badoni,
D.C., „Positive Disconfirmation as a Threshold to High Satisfaction‟, Journal
of Management Research,
 Ashok J.,A Study on Developing Strategies to improve the sales of Maruti
Zen Passenger Automobiles‟, International Journal of Management Science
 Baumgartner, G and Jolibert, A (2008), “Consumer Attitudes Towards Foreign
Automobiles”, International Business Studies II (Spring)Bennett, Rebekah,
Rundle
 Bhasin T.M.„Channelising Retail Credit‟, Indian Banks’ Association (Monthly
Journal), Bruner, Gordon C., “The Effect of Problem Recognition Style an
Information Seeking”, Journal of the Academy of Marketing Science
 Chidambaram and Alfread „A Study on Brand Preference of Passenger
Automobile with Reference to Coimbatore City‟, Indian Journal of Marketing,

36
 Churchill, Gilbert A., and Automobileol Suprenant, „An Investigation into the
Determinants of Customer Satisfaction‟, Journal of Marketing Research
 Dornoff, R. J, Tanbersley, C. B and White, G. P (2008), “Consumers‟
Perceptions on Automobiles: A Market Segment Analysis”, Akron Business
and Economic Review
 Furse, David H, Girish N. Punj and David W.Stewart, “A Typology of Individual
search strategies among purchasers of New Automobiles”, Journal of
Consumer Research,
 Gaedebe, R (2007), “Consumer Attitude towards Automobiles Made in
Developing Countries”, Journal of Retailing
 George Homans - Social Behaviour: Its Elementary Forms Harcourt, Brace
and World, New York, 1961, and Michael J. Ryan and E.H. Bonfield, „The
Fishbein Extended Goods and Services Tax in India –Paradigm Shift in
Taxation, International Journal for Research in Applied Science & Engineering
Technology (2018)
 Impact of GST on Travel and Tourism Industry, International Journal of
Science and Research (2017)
 Impact of Goods and Services Tax on the Restaurants and Food Service
Businesses in India, International Journal of Applied Business and Economic
Research (2017)
 An Empirical Study on Impact of GST on Hotel Industry at Chennai City,
Journal of Emerging Technologies an Innovative Research (2020)
 Evaluation on the Impact of GST on Restaurant Business in Tambaram,
Chennai, International Journal of Recent Technology and Engineering (2019),
Model and Consumer Behaviour‟, Journal of Consumer Research

37
38
39
40
41
42
43
44
45
46
47
48
49
50